Stock Traders Purchase High Volume of Lamb Weston Call Options (NYSE:LW)

Lamb Weston Holdings, Inc. (NYSE:LW) was the target of some unusual options trading activity on Friday. Stock investors bought 13,209 call options on the company. This is an increase of approximately 68% compared to the average volume of 7,855 call options.

Analyst Upgrades and Downgrades

Several research firms have commented on LW. TD Cowen increased their price objective on shares of Lamb Weston from $61.00 to $65.00 and gave the company a “hold” rating in a research note on Tuesday, September 24th. Citigroup lifted their target price on shares of Lamb Weston from $76.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, October 22nd. Wells Fargo & Company boosted their price objective on Lamb Weston from $70.00 to $77.00 and gave the stock an “overweight” rating in a report on Thursday, October 3rd. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $68.00 price target (up previously from $63.00) on shares of Lamb Weston in a research note on Monday, October 7th. Finally, Barclays upped their price target on shares of Lamb Weston from $70.00 to $74.00 and gave the company an “overweight” rating in a research report on Friday, October 4th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, Lamb Weston currently has a consensus rating of “Hold” and an average target price of $82.36.

Hedge Funds Weigh In On Lamb Weston

Hedge funds and other institutional investors have recently modified their holdings of the stock. Diversified Trust Co lifted its stake in shares of Lamb Weston by 24.0% in the second quarter. Diversified Trust Co now owns 7,303 shares of the specialty retailer’s stock worth $614,000 after buying an additional 1,413 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its position in shares of Lamb Weston by 34.2% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 7,010 shares of the specialty retailer’s stock valued at $589,000 after acquiring an additional 1,786 shares during the last quarter. ORG Partners LLC acquired a new stake in Lamb Weston in the 2nd quarter valued at approximately $53,000. Naples Global Advisors LLC grew its stake in shares of Lamb Weston by 40.3% in the second quarter. Naples Global Advisors LLC now owns 7,566 shares of the specialty retailer’s stock valued at $636,000 after buying an additional 2,175 shares in the last quarter. Finally, Blue Trust Inc. boosted its holdings in Lamb Weston by 251.6% during the 2nd quarter. Blue Trust Inc. now owns 436 shares of the specialty retailer’s stock valued at $37,000 after acquiring an additional 312 shares during the period. 89.56% of the stock is owned by hedge funds and other institutional investors.

Lamb Weston Stock Performance

Shares of NYSE LW traded down $0.80 during midday trading on Friday, hitting $73.43. 2,146,764 shares of the company’s stock traded hands, compared to its average volume of 2,431,031. Lamb Weston has a 1 year low of $52.99 and a 1 year high of $111.88. The stock has a market capitalization of $10.47 billion, a price-to-earnings ratio of 17.42, a price-to-earnings-growth ratio of 1.34 and a beta of 0.70. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.54 and a current ratio of 1.19. The firm has a fifty day moving average of $76.27 and a 200 day moving average of $73.12.

Lamb Weston (NYSE:LW) last announced its quarterly earnings results on Tuesday, October 1st. The specialty retailer reported $0.73 EPS for the quarter, topping the consensus estimate of $0.72 by $0.01. Lamb Weston had a net margin of 9.57% and a return on equity of 34.33%. The business had revenue of $1.65 billion for the quarter, compared to analysts’ expectations of $1.55 billion. During the same quarter in the previous year, the company earned $1.63 EPS. The business’s quarterly revenue was down .7% compared to the same quarter last year. On average, analysts forecast that Lamb Weston will post 4.26 earnings per share for the current year.

Lamb Weston Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Friday, November 1st were given a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.96%. The ex-dividend date of this dividend was Friday, November 1st. Lamb Weston’s payout ratio is currently 33.80%.

About Lamb Weston

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.